BILL NUMBER: SB 1869	CHAPTERED  09/30/00

	CHAPTER   999
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 22, 2000
	AMENDED IN ASSEMBLY   JUNE 13, 2000
	AMENDED IN SENATE   MAY 24, 2000
	AMENDED IN SENATE   MAY 2, 2000

INTRODUCED BY   Senator Solis

                        FEBRUARY 24, 2000

   An act to amend Section 4128 of the Probate Code, relating to
power of attorney.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1869, Solis.   Power of attorney.
   Existing law provides that a power of attorney may not be
construed to grant authority to an attorney-in-fact to make or revoke
a gift of the principal's property in trust or otherwise unless
expressly authorized in the power of attorney.  Existing law also
provides that a printed form of a durable power of attorney that is
distributed for use by a person who does not have the advice of legal
counsel shall contain a specified warning statement.
   This bill would revise the above-described warning statement to
include a provision indicating that the person executing the durable
power of attorney must specifically authorize his or her agent to
receive a gift.  This bill would also add a provision to the warning
statement that provides notice to the person accepting an appointment
under a power of attorney that describes his or her fiduciary and
other legal responsibilities under the appointment and the
limitations thereon, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 4128 of the Probate Code is amended to read:
   4128.  (a) Subject to subdivision (b), a printed form of a durable
power of attorney that is sold or otherwise distributed in this
state for use by a person who does not have the advice of legal
counsel shall contain, in not less than 10-point boldface type or a
reasonable equivalent thereof, the following warning statements:
      Notice to Person Executing Durable Power of Attorney

   A durable power of attorney is an important legal document.  By
signing the durable power of attorney, you are authorizing another
person to act for you, the principal.  Before you sign this durable
power of attorney, you should know these important facts:
   Your agent (attorney-in-fact) has no duty to act unless you and
your agent agree otherwise in writing.
   This document gives your agent the powers to manage, dispose of,
sell, and convey your real and personal property, and to use your
property as security if your agent borrows money on your behalf.
This document does not give your agent the power to accept or receive
any of your property, in trust or otherwise, as a gift, unless you
specifically authorize the agent to accept or receive a gift.
   Your agent will have the right to receive reasonable payment for
services provided under this durable power of attorney unless you
provide otherwise in this power of attorney.
   The powers you give your agent will continue to exist for your
entire lifetime, unless you state that the durable power of attorney
will last for a shorter period of time or unless you otherwise
terminate the durable power of attorney.  The powers you give your
agent in this durable power of attorney will continue to exist even
if you can no longer make your own decisions respecting the
management of your property.
   You can amend or change this durable power of attorney only by
executing a new durable power of attorney or by executing an
amendment through the same formalities as an original.  You have the
right to revoke or terminate this durable power of attorney at any
time, so long as you are competent.
   This durable power of attorney must be dated and must be
acknowledged before a notary public or signed by two witnesses.  If
it is signed by two witnesses, they must witness either (1) the
signing of the power of attorney or (2) the principal's signing or
acknowledgment of his or her signature.  A durable power of attorney
that may affect real property should be acknowledged before a notary
public so that it may easily be recorded.
   You should read this durable power of attorney carefully.  When
effective, this durable power of attorney will give your agent the
right to deal with property that you now have or might acquire in the
future.  The durable power of attorney is important to you.  If you
do not understand the durable power of attorney, or any provision of
it, then you should obtain the assistance of an attorney or other
qualified person.

      Notice to Person Accepting the Appointment as Attorney-in-Fact

   By acting or agreeing to act as the agent (attorney-in-fact) under
this power of attorney you assume the fiduciary and other legal
responsibilities of an agent.  These responsibilities include:
   1. The legal duty to act solely in the interest of the principal
and to avoid conflicts of interest.
   2. The legal duty to keep the principal's property separate and
distinct from any other property owned or controlled by you.
   You may not transfer the principal's property to yourself without
full and adequate consideration or accept a gift of the principal's
property unless this power of attorney specifically authorizes you to
transfer property to yourself or accept a gift of the principal's
property.  If you transfer the principal's property to yourself
without specific authorization in the power of attorney, you may be
prosecuted for fraud and/or embezzlement.  If the principal is 65
years of age or older at the time that the property is transferred to
you without authority, you may also be prosecuted for elder abuse
under Penal Code Section 368.  In addition to criminal prosecution,
you may also be sued in civil court.
   I have read the foregoing notice and I understand the legal and
fiduciary duties that I assume by acting or agreeing to act as the
agent (attorney-in-fact) under the terms of this power of attorney.


Date:

____________________________
     (Signature of agent)

_____________________________
     (Print name of agent)

   (b) Nothing in subdivision (a) invalidates any transaction in
which a third person relied in good faith on the authority created by
the durable power of attorney.
   (c) This section does not apply to a statutory form power of
attorney under Part 3 (commencing with Section 4400).
  SEC. 2.  The provisions of this bill shall not affect any legally
sufficient power of attorney executed prior to January 1, 2001.
  SEC. 3.  The provisions of this bill shall not affect a durable
power of attorney under Section 4128 of the Probate Code executed
prior to March 1, 2001.  Subsequent to March 1, 2001, all printed
forms under Section 4128 of the Probate Code shall conform to the
provisions of this bill.
